Oklahoma monthly tax revenues, while continuing to grow, are beginning to reflect the economic impact of lower energy prices, State Treasurer Randy McDaniel announced today.
Gross production taxes on crude oil and natural gas in January are from oil field production during November, when crude oil prices fell throughout the month. Those receipts, at just over $100 million, are the lowest monthly total since the production incentive tax rate was raised from 2 percent to 5 percent last year.
But all major revenue streams showed increases. January collections are up by almost 9 percent over last year and combined receipts for the past 12 months are up by almost 13 percent.
“The sustained expansion of the state’s economy is noteworthy, but the recent volatility of energy prices illuminates the importance of proceeding with caution,” Treasurer McDaniel said. “We have started to see the impact of lower prices on oil and gas tax collections. However, at least at this point, any substantial spillover effect on other major revenue sources has not materialized.”
Monthly income, sales, and motor vehicle tax collections all showed growth in January of between 2.1 percent and 3.2 percent compared to January 2018. In comparison, combined receipts over the past 12 months show a higher growth rate in those revenue sources ranging from 3.4 percent to 8.4 percent.
Revenue generated by increased tax rates approved in House Bill 1010 during special session last year – the biggest tax increase in state history – added $50.3 million to monthly collections, 4 percent of January gross receipts.
The largest share, $32 million, came from the increase in the incentive tax rate on oil and natural gas gross production. Higher tax rates on gasoline and diesel fuel generated $9.9 million, and the $1 per pack hike in cigarette taxes added $8.4 million to January’s total.
January gross collections total $1.2 billion, up $101.1 million, or 8.9 percent, from January 2018.
Income tax collections generated $459.4 million, an increase of $9.4 million, or 2.1 percent, from the previous January.
Individual income tax collections for the month are $412.9 million, up by $4.6 million, or 1.1 percent, from the prior year. Corporate collections are $46.5 million, an increase of $4.8 million, or 11.5 percent.
Sales tax collections totaled $419.9 million in January. That is $13 million, or 3.2 percent, more than January 2018.
Gross production taxes on oil and natural gas generated $100.1 million in January, an increase of $39.3 million, or 64.7 percent, from last January. Compared to December reports, gross production collections are down by $18.3 million, or 15.4 percent.
Motor vehicle taxes produced $68.1 million, up by $1.4 million, or 2.1 percent, from the same month of 2018.
Other collections, consisting of about 60 different sources including use taxes, along with taxes on fuel, tobacco, and alcoholic beverages, produced $194.1 million during the month. That is $38.1 million, or 24.4 percent, more than last January.
Gross revenue totals $13.1 billion from the past 12 months. That is $1.5 billion, or 12.7 percent, more than collections from the previous 12 months.